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Johnson, Crapo may unveil GSE bill soon

Feb. 14, 2014 - Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, are reportedly close to sharing or even introducing legislation on housing finance reform, according to American Banker.

The article noted, "Johnson and Crapo are expected to draw on a bipartisan framework to unwind Fannie Mae and Freddie Mac introduced by Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., last summer. That bill created an explicit backstop for the housing market, but required private lenders to hold a 10% loss position on any loans guaranteed by the government."

Earlier this month, Johnson and Crapo reiterated their intention to push bipartisan housing finance reform in a joint statement. “With the hearing and information-gathering stage behind us, our hard work continues as we dive deep into the drafting and negotiating phase of Housing Finance Reform,” they wrote. “Our goal from the start has been to produce the strongest bipartisan bill possible."

White House officials have also recently been pushing for housing finance reform to be completed before the midterm elections. NAFCU continues to advocate guaranteed credit union access to the secondary mortgage market and loan pricing that prioritizes loan quality over volume.